Rapala: Big fish caught in the net of those with patience

Rapala’s H2’21 fell clearly short of our high expectations as some key orders were received already in H1’21 as stores ensured availability. 2021 net sales improved by 50% to EUR 32.7 million and thus the company heads into 2022 from a lower earnings level than we expected. However, we still believe in preconditions for continued earnings growth also in the next few years despite the fishing boom slowing down as the journey to reach the full potential of the Rapala brand and the rod & reel category has only started. The valuation is cheap despite our estimate revisions.
Rapala VMC is a company focused on sport fishing products. The sale of fishing equipment takes place through the company’s distribution network and includes several brands. The product range includes lures as well as related gear such as rods, reels, hooks, and fishing knives. The company operateCorporations globally, with its largest markets in Europe and North America. The company’s headquarters is located in Helsinki, Finland
Read more on company pageKey Estimate Figures29.11.2021
2020 | 21e | 22e | |
---|---|---|---|
Omsætning | 261,3 | 300,7 | 286,8 |
vækst-% | -5,1 % | 15,1 % | -4,6 % |
EBIT (adj.) | 21,5 | 39,7 | 34,0 |
EBIT-% (adj.) | 8,2 % | 13,2 % | 11,9 % |
EPS (adj.) | 0,31 | 0,62 | 0,57 |
Udbytte | 0,00 | 0,20 | 0,30 |
Udbytte % | 15,0 % | 22,6 % | |
P/E (adj.) | 14,1 | 2,1 | 2,3 |
EV/EBITDA | 9,9 | 2,2 | 2,2 |